Bloomberg: Dell cuts more than 6.5 thousand employees

Bloomberg: Dell cuts more than 6.5 thousand employees


Dell Technologies has become another major tech company to announce layoffs. According to BloombergDell plans to cut about 6650 people.

The reasons for this decision are explained by the COO of Dell, Jeff Clark, in an internal letter, the content of which was obtained by the agency. As Mr. Clarke explains, market conditions "continue to deteriorate and the future remains uncertain." The number of employees indicated in the letter, falling under the reduction, is about 5% of the total number of people working at Dell.

The company's cost-cutting measures already in place, including suspending new hires and curtailing business travel, have not been enough, the chief operating officer said. According to management, the reorganization of departments and the reduction of jobs will improve the efficiency of work. After these reductions, the number of employees working at Dell will be the lowest in at least six years, Bloomberg notes. It will be 39 thousand people less than in January 2020.

Behind Dell's decision to cut, in particular, there may be a drop in demand for its products, Bloomberg notes. In the fourth quarter of 2022, PC sales in the world fell sharply in the fourth quarter of 2022, and Dell had the most significant drop - by 37% compared to the same period in 2021, according to preliminary data from the analytical company IDC. PC sales account for 55% of Dell's revenue.

In general, in 2022, companies in the technology sector announced the reduction of more than 97 thousand employees. That's 649% more than in 2021, according to consultancy Challenger, Gray & Christmas. Among the companies that, like Dell, found it necessary to announce massive layoffs in recent weeks, Alphabet, MicrosoftAmazon, 3M, IBM, SAP, Dow, Spotify, Cisco Systems. HP announced cuts back in November 2022.

Read more about mass layoffs in American high-tech companies - in the material "Kommersant" "Technology has shrunk".

Alena Miklashevskaya



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